Trade performance in China for the month of February was worse than expected as exports declined the most in more than six years. China’s report dragged down markets across the globe.
Oil prices took a hit, dropping 3% in volatile trading.
The data has hampered sentiment and reaffirms the concerns of China’s slow growth. In the U.S., equities were weighed by oil’s slight pull-back.
While oil has been making a recovery, a warning from Goldman Sachs (GS) on Tuesday called the rally premature and noted that prices would need to remain lower to rebalance the market later in 2016.
The S&P’s energy sector saw the biggest declines, dragging the remaining nine sectors over 3%. Chevron (CVX) and Exxon (XOM) retreated 1.5% each.
The S&P 500 lost 20.69 points (1.03%) at 1,981.07, while the Dow Jones industrial average dropped 130.29 points (0.76%) to 16,943.66. The Nasdaq Composite index fell 48.47 points (1.03%) to 4,659.79.
In addition to lower oil prices and China’s weak data, investors are focused on the monetary policies of central banks around the world and the state of the global economy.
The European Central Bank is largely expected to announce that it would implement further stimulus during its meeting later in the week. Meanwhile, the U.S. Federal Reserve may consider raising rates again this year as new data suggests the United States economic recovery is gaining momentum.
The upbeat sentiment pushed the S&P 500 higher on Monday to secure its first 5-day winning streak since October. The index climbed above 2,000 for the first time since early January.
On the Nasdaq and S&P 500, Apple (AAPL) was the biggest decliner. Caterpillar (CAT) dragged down the Dow.
Urban Outfitters (URBN), on the other hand, saw gains of 13.8% to jump to $32.05 after reporting higher-than-expected sales for its Free People brand.
Shake Shack (SHAK) lost 9.5% to $38.19 after issuing a disappointing forecast and results.
AutoNation (AN) fell 6.7% to $49.34 after its rating was lowered to “sell” by Goldman Sachs (GS).
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